heskinammo408 heskinammo408
  • 15-02-2024
  • Business
contestada

The after-tax cost of debt is lower when the firm's tax rate is higher. Therefore, the WACC falls when the tax rate rises. Thus, with a lower discount rate, the firm must be worth more if its tax rate:

A. Increases
B. Decreases
C. Remains the same
D. Cannot be determined

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